NZGBS: Little Changed, Fed Powell’s Comments Buoy US Tsys

In local morning trade, NZGBs are little changed. Overnight, Fed Chair Powell's comments at the ECB conference in Sintra that there are signs that the disinflationary trend has resumed after the Q1 pause and that "a lot of progress has been made" underpinned gains for US tsys and equities.

• US tsys pared gains after higher than expected JOLTS job openings of 8.14mn vs. 7.946mn est, while prior was down revised to 7.919mn from 8.059mn.
• The US 10-year yield reached the session lows near 4.41% following Powell’s comments before rebounding on the JOLTS data to close at 4.43%, 3bps richer.
• There is a heavy US data drop in today’s shortened session (floor closes at 1300ET, cash at 1300ET while Globex closes at the normal time of 1700ET): Challenger Job Cuts, ADP Employment, Weekly Jobless claims, ISM Services, Factory/Durables Orders and June FOMC Minutes. Friday's full session sees June Non-Farm Payroll data.
• Swap rates are unchanged.
• RBNZ dated OIS pricing is little changed across meetings. A cumulative 33bps of easing is priced by year-end.
• Today, the local calendar will see ANZ Commodity Price data.
• On Thursday, the NZ Treasury plans to sell NZ$225mn of the 1.5% May-31 bond, NZ$175mn of the 4.25% May-34 bond and NZ$100mn of the 1.75% May-41 bond.